One Extremely Telling Reason to Avoid Fixed Annuities

annuity cost

Can you imagine going into a restaurant and watching the chef order food from a different place down the street?

I wouldn’t eat a meal cooked by that chef. Bet you wouldn’t, either.

But that's what companies selling fixed annuities do.

Earlier this year, I was at the Tiburon CEO Summit. The Summit is an invitation-only gathering of the top executives of the largest financial companies in the country - broker-dealers, insurance companies, mutual-fund companies, investment advisors, private equity firms and technology companies serving the financial sector. I've gone to these semi-annual events for the last six or seven years.

The organizer surveyed us to find out what financial products we ourselves own. Guess what product NO ONE in the room had?

Fixed annuities.

This, despite the fact that some of those polled are the very C-level execs whose companies manufacture the product, or who run sales organizations that peddle it to consumers.

Is it any surprise, then, that so many callers to my radio show say they're not happy with the annuity products they’ve been sold? 

If someone is pitching you an annuity, maybe in a free-meal seminar, ask the promoter: Do you own this product? Have you sold one to your mother?

If he isn't willing to buy it for himself and his family, ask yourself: Why would you want to buy it?